Kennedy-Wilson 8K Kennedy Wilson Reports 3Q 2012 Earnings | KW 6 Nov 12

Exhibit 99.2

Kennedy-Wilson Holdings, Inc.

Third Quarter 2012

Supplemental Financial Information

Kennedy-Wilson Holdings, Inc.

Supplemental Financial Information

For the Quarter Ended September 30, 2012

TABLE OF CONTENTS

Note about Non-GAAP financial information included in this presentation

In addition to the results reported in accordance with U.S. generally accepted accounting principles (GAAP) included within this presentation, Kennedy-Wilson Holdings, Inc. (Kennedy Wilson) has provided certain information, which includes non-GAAP financial measures (pro forma consolidated statements of operations, EBITDA and Adjusted EBITDA). Such information is reconciled to its closest GAAP measure in accordance with the rules of the Securities and Exchange Commission and is included within this presentation. Management believes that these non-GAAP financial measures are useful to both management and Kennedy Wilson's shareholders in their analysis of the business and operating performance of Kennedy Wilson. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measures. Additionally, non-GAAP financial measures as presented by Kennedy Wilson may not be comparable to similarly titled measures reported by other companies.

Kennedy-Wilson Holdings, Inc.

Pro Forma Consolidated Statements of Operations (Non-GAAP)



	Three months ended September 30,
	2012									2011
	Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total			Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total
Revenue
Management and leasing fees	$	10,335,000		$	—		$	10,335,000		$	7,851,000		$	—		$	7,851,000
Commissions	2,145,000			—			2,145,000			3,259,000			—			3,259,000
Sale of real estate	1,275,000			—			1,275,000			—			3,029,000			3,029,000
Rental and other income	1,485,000			20,572,000			22,057,000			1,666,000			12,655,000			14,321,000
Interest income	—			4,549,000			4,549,000			—			2,459,000			2,459,000
Total revenue	15,240,000			25,121,000			40,361,000			12,776,000			18,143,000			30,919,000
Operating expenses
Commission and marketing expenses	1,371,000			—			1,371,000			1,641,000			—			1,641,000
Compensation and related expenses	11,364,000			198,000			11,562,000			8,473,000			—			8,473,000
Cost of real estate sold	1,275,000			—			1,275,000			—			2,522,000			2,522,000
General and administrative	5,014,000			229,000			5,243,000			3,329,000			—			3,329,000
Depreciation and amortization	989,000			5,085,000			6,074,000			931,000			3,849,000			4,780,000
Rental operating expenses	847,000			7,055,000			7,902,000			1,195,000			6,063,000			7,258,000
Total operating expenses	20,860,000			12,567,000			33,427,000			15,569,000			12,434,000			28,003,000
Equity in joint venture income (loss)	1,848,000			(1,848,000		)	—			(646,000		)	646,000			—
Interest income from loan pool participations and notes receivable	3,712,000			(3,712,000		)	—			1,048,000			(1,048,000		)	—
Operating (loss) income	(60,000		)	6,994,000			6,934,000			(2,391,000		)	5,307,000			2,916,000
Non-operating income (expense)
Interest income	179,000			(179,000		)	—			635,000			(635,000		)	—
Gain on sale of interest in joint venture investments	—			2,352,000			2,352,000			—			—			—
Foreign currency exchange loss	(6,000		)	—			(6,000		)	—			—			—
Interest expense	(6,755,000		)	(8,364,000		)	(15,119,000		)	(6,117,000		)	(4,672,000		)	(10,789,000		)
Other non-operating expenses	—			(803,000		)	(803,000		)	—			—			—
Loss before benefit from income taxes	(6,642,000		)	—			(6,642,000		)	(7,873,000		)	—			(7,873,000		)
Benefit from income taxes	2,500,000			—			2,500,000			2,997,000			—			2,997,000
Loss from continuing operations	$	(4,142,000	)	$	—		$	(4,142,000	)	$	(4,876,000	)	$	—		$	(4,876,000	)

Kennedy-Wilson Holdings, Inc.

Pro Forma Consolidated Statements of Operations (Non-GAAP)



	Nine months ended September 30,
	2012									2011
	Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total			Consolidated			Pro Rata Unconsolidated Investments			Pro Forma Total
Revenue
Management and leasing fees	$	29,308,000		$	—		$	29,308,000		$	17,808,000		$	—		$	17,808,000
Commissions	6,165,000			—			6,165,000			8,429,000			—			8,429,000
Sale of real estate	1,275,000			58,800,000			60,075,000			417,000			34,164,000			34,581,000
Rental and other income	4,432,000			54,496,000			58,928,000			3,359,000			46,077,000			49,436,000
Interest income	—			12,687,000			12,687,000			—			8,838,000			8,838,000
Total revenue	41,180,000			125,983,000			167,163,000			30,013,000			89,079,000			119,092,000
Operating expenses
Commission and marketing expenses	3,676,000			—			3,676,000			3,015,000			—			3,015,000
Compensation and related expenses	30,658,000			698,000			31,356,000			24,562,000			—			24,562,000
Cost of real estate sold	1,275,000			50,100,000			51,375,000			397,000			29,674,000			30,071,000
General and administrative	13,571,000			529,000			14,100,000			9,183,000			—			9,183,000
Depreciation and amortization	2,903,000			12,985,000			15,888,000			1,828,000			11,558,000			13,386,000
Rental operating expenses	2,638,000			18,855,000			21,493,000			2,248,000			18,568,000			20,816,000
Total operating expenses	54,721,000			83,167,000			137,888,000			41,233,000			59,800,000			101,033,000
Equity in joint venture income	12,472,000			(12,472,000		)	—			7,229,000			(7,229,000		)	—
Interest income from loan pool participations and notes receivable	7,126,000			(7,126,000		)	—			5,835,000			(5,835,000		)	—
Operating income	6,057,000			23,218,000			29,275,000			1,844,000			16,215,000			18,059,000
Non-operating income (expense)
Interest income	2,503,000			(2,503,000		)	—			1,234,000			(1,234,000		)	—
Carried interest on realized investment	—			2,400,000			2,400,000			—			—			—
Gain on sale of interest in joint venture investments				2,352,000			2,352,000			—			—			—
Remeasurement gain	—			—			—			6,348,000			—			6,348,000
Gain on sale of marketable securities	2,931,000			—			2,931,000			—			—			—
Foreign currency exchange loss	(80,000		)	—			(80,000		)	—			—			—
Interest expense	(19,979,000		)	(23,364,000		)	(43,343,000		)	(13,874,000		)	(14,981,000		)	(28,855,000		)
Other non-operating expenses	—			(2,103,000		)	(2,103,000		)	—			—			—
Loss before benefit from income taxes	(8,568,000		)	—			(8,568,000		)	(4,448,000		)	—			(4,448,000		)
Benefit from income taxes	5,121,000			—			5,121,000			2,162,000			—			2,162,000
Loss from continuing operations	$	(3,447,000	)	$	—		$	(3,447,000	)	$	(2,286,000	)	$	—		$	(2,286,000	)

Kennedy-Wilson Holdings, Inc.

Adjusted EBITDA



	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Net loss	$	(4,142,000	)	$	(4,876,000	)	$	(3,657,000	)	$	(2,286,000	)
Non-GAAP adjustments:
Add back:
Interest expense	6,755,000			6,117,000			19,979,000			13,874,000
Kennedy Wilson's share of interest expense included in investment in joint ventures and loan pool participations	8,364,000			4,672,000			23,364,000			14,981,000
Depreciation and amortization	989,000			931,000			2,903,000			1,828,000
Kennedy Wilson's share of depreciation and amortization included in investment in joint ventures	5,085,000			3,849,000			12,985,000			11,558,000
Benefit from income taxes	(2,500,000		)	(2,997,000		)	(5,121,000		)	(2,162,000		)
EBITDA	14,551,000			7,696,000			50,453,000			37,793,000
Stock based compensation	2,922,000			1,296,000			5,000,000			3,761,000
Adjusted EBITDA	$	17,473,000		$	8,992,000		$	55,453,000		$	41,554,000

Kennedy-Wilson Holdings, Inc.

EBITDA by Segment



	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Investments
Rental and other income and sale of real estate	$	2,760,000		$	1,666,000		$	5,707,000		$	3,776,000
Operating expenses	(10,184,000		)	(5,378,000		)	(22,008,000		)	(14,703,000		)
Equity in income (loss) of joint ventures	1,848,000			(646,000		)	12,472,000			7,229,000
Income from loan pool participations and notes receivable	3,712,000			1,048,000			7,126,000			5,835,000
Operating income (loss)	(1,864,000		)	(3,310,000		)	3,297,000			2,137,000
Remeasurement gain	—			—			—			6,348,000
Gain on sale of marketable securities	—			—			2,931,000			—
Realized foreign currency exchange loss	(6,000		)	—			(80,000		)	—
Interest income - related party	139,000			—			2,408,000			—
Interest expense	(160,000		)	(73,000		)	(477,000		)	(225,000		)
(Loss) income from continuing operations	(1,891,000		)	(3,383,000		)	8,079,000			8,260,000
Income from discontinued operations, net of income taxes	—			—			2,000			—
Loss from sale of real estate, net of income taxes	—			—			(212,000		)	—
Net (loss) income	(1,891,000		)	(3,383,000		)	7,869,000			8,260,000
Add back:
Interest expense	160,000			73,000			477,000			225,000
Kennedy Wilson's share of interest expense included investment in joint ventures and loan pool participation	8,364,000			4,672,000			23,364,000			14,981,000
Depreciation and amortization	856,000			830,000			2,538,000			1,569,000
Kennedy Wilson's share of depreciation and amortization included in investment in joint ventures	5,085,000			3,849,000			12,985,000			11,558,000
EBITDA	$	12,574,000		$	6,041,000		$	47,233,000		$	36,593,000



	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Services
Management and leasing fees and commissions	$	12,480,000		$	11,110,000		$	35,473,000		$	26,237,000
Operating expenses	(7,678,000		)	(7,983,000		)	(24,411,000		)	(19,841,000		)
Operating income	4,802,000			3,127,000			11,062,000			6,396,000
Net income	4,802,000			3,127,000			11,062,000			6,396,000
Add back:
Depreciation and amortization	40,000			33,000			107,000			98,000
EBITDA	$	4,842,000		$	3,160,000		$	11,169,000		$	6,494,000

Kennedy-Wilson Holdings, Inc.

Consolidated Balance Sheets



	September 30, 2012			December 31, 2011

Assets
Cash and cash equivalents	$	126,804,000		$	115,926,000
Accounts receivable	3,378,000			3,114,000
Accounts receivable — related parties	19,504,000			15,612,000
Notes receivable	43,391,000			7,938,000
Notes receivable — related parties	40,101,000			33,269,000
Real estate, net	111,517,000			115,880,000
Investments in joint ventures	380,563,000			343,367,000
Investment in loan pool participations	102,854,000			89,951,000
Marketable securities	10,265,000			23,005,000
Other assets	19,955,000			20,749,000
Goodwill	23,965,000			23,965,000
Total assets	$	882,297,000		$	792,776,000

Liabilities
Accounts payable	$	1,306,000		$	1,798,000
Accrued expenses and other liabilities	29,129,000			24,262,000
Accrued salaries and benefits	5,600,000			14,578,000
Deferred tax liability	19,610,000			18,437,000
Senior notes payable	249,425,000			249,385,000
Mortgage loans payable	30,748,000			30,748,000
Junior subordinated debentures	40,000,000			40,000,000
Total liabilities	375,818,000			379,208,000
Equity
Common stock	6,000			5,000
Additional paid-in capital	514,586,000			407,335,000
(Accumulated deficit) retained earnings	(11,583,000		)	9,708,000
Accumulated other comprehensive income	11,786,000			5,035,000
Shares held in treasury at cost	(9,856,000		)	(11,848,000		)
Total Kennedy-Wilson Holdings, Inc. shareholders' equity	504,939,000			410,235,000
Noncontrolling interests	1,540,000			3,333,000
Total equity	506,479,000			413,568,000
Total liabilities and equity	$	882,297,000		$	792,776,000

Kennedy-Wilson Holdings, Inc.

Capitalization Summary



	September 30, 2012			December 31, 2011
Market Data
Common stock price per share	$	13.97		$	10.58
Common stock and convertible preferred stock:
Basic shares outstanding ⁽¹⁾	63,772,598			51,825,998
Series A mandatory convertible preferred ⁽²⁾	8,058,018			8,058,018
Series B mandatory convertible preferred ⁽³⁾	3,042,056			3,042,056
Total common stock and convertible preferred stock	74,872,672			62,926,072

Equity Market Capitalization	$	1,045,971,228		$	665,757,842

Debt
Senior notes payable ⁽⁴⁾	250,000,000			250,000,000
Mortgage loans payable	30,748,000			30,748,000
Junior subordinated debentures	40,000,000			40,000,000
Total debt	$	320,748,000		$	320,748,000
Noncontrolling interest	1,540,000			3,333,000
Total Capitalization	$	1,368,259,228		$	989,838,842
Less: cash and cash equivalents	(126,804,000		)	(115,926,000		)
Total Enterprise Value	$	1,241,455,228		$	873,912,842
Warrants outstanding ⁽⁵⁾	5,934,144			6,435,644

(1) In July 2012, the Company issued 8.6 million shares of common stock to institutional investors resulting in gross proceeds of $112.1 million.

(2) $100 million of Series A mandatory convertible preferred with a mandatory conversion date of May 19, 2015 and a conversion rate of $12.41 per share.

(3) $32.5 million of Series B mandatory convertible preferred with a mandatory conversion date of November 3, 2018 and a conversion rate of $10.70 per share.

(4) Represents principal balance of senior notes.

(5) The warrants carry an exercise price of $12.50 and expire on November 14, 2014.

Kennedy-Wilson Holdings, Inc. and Subsidiaries

Investment Account Comparison

(in millions)



	9/30/2012			December 31, 2011
Investment in joint ventures	$	380.6		$	343.4
Real estate	111.5			115.9
Mortgage debt	(30.7		)	(30.7		)
Notes receivable	83.5			41.2
Loan pool participations	102.9			90.0
Marketable securities	10.3			23.0
Total	$	658.1		$	582.8

Investment Account Detail at September 30, 2012



	Multifamily		Loans Secured by Real Estate		Commercial		Residential		Other		Total
Western U.S.	$	125.3	$	156.3	$	63.9	$	85.2	$	0.5	$	431.2
Japan	106.4		—		9.0		—		—		115.4
United Kingdom and Ireland	11.9		72.8		10.1		—		10.2		105.0
Other	0.4		—		0.5		0.2		5.4		6.5
Total	$	244.0	$	229.1	$	83.5	$	85.4	$	16.1	$	658.1

Investment Account Detail at December 31, 2011



	Multifamily		Loans Secured by Real Estate		Commercial		Residential		Other		Total
Western U.S.	$	131.3	$	106.5	$	52.3	$	78.4	$	—	$	368.5
Japan	112.1		—		9.3		—		—		121.4
United Kingdom and Ireland	—		60.0		—		—		23.0		83.0
Other	0.2		4.8		0.7		0.1		4.1		9.9
Total	$	243.6	$	171.3	$	62.3	$	78.5	$	27.1	$	582.8

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Multifamily

($ in millions)



						Net Operating Income (NOI)
	# of Properties	# of Units	��	Occupancy ⁽¹⁾		YTD Annualized ⁽²⁾		Debt ⁽³⁾		Pre-Promote Ownership%		Book Equity ⁽¹⁾
Western U.S.	29	10,954		94.9	%	$	96.6	$	1,143.8	28.8	%	$	125.3
Japan ⁽⁴⁾	50	2,410		97.3		30.4		342.9		40.9		106.4
United Kingdom and Ireland ⁽⁴⁾	1	210		94.8		3.0		28.8		50.0		11.9
Other	3	376		85.6		1.0		5.8		9.6		0.4
Total	83	13,950		95.1	%	$	131.0	$	1,521.3	31.9	%	$	244.0

(1) As of September 30, 2012.

(2) Represents year to date NOI on an annualized basis.

(3) Debt represents 100% debt balance against properties as of September 30, 2012.

(4) Estimated foreign exchange rates are ¥78 = $1 USD, £0.63 = $1 USD and €0.78 = $1 USD, related to NOI and debt.

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Discounted Loan Purchases and Loan Originations

($ in millions)

Discounted Loan Purchases



	# of Loans ⁽¹⁾	Initial UPB ⁽²⁾		# of Unresolved Loans	Total Resolutions		Current UPB		Pre-Promote KW Share of Current UPB (net of venture-level debt)		Venture-level Debt ⁽³⁾		Pre-Promote Ownership%		KW Book Equity
Western U.S.	100	$	570.5	24	$	389.4	$	175.4	$	82.2	$	18.9	52.5	%	$	73.5
United Kingdom and Ireland ⁽⁴⁾	201	2,510.7		183	756.9		1,753.8		145.8		146.8		11.9		72.8
Total	301	$	3,081.2	207	$	1,146.3	$	1,929.2	$	228.0	$	165.7	15.6	%	$	146.3

Loan Originations



	# of Loans	Current UPB		WAV Interest Rate		Venture-level Debt ⁽³⁾		Pre-Promote Ownership%		KW Book Equity
Western U.S.	9	$	82.8	12.3	%	$	—	100.0	%	$	82.8
Total	9	$	82.8	12.3	%	$	—	100.0	%	$	82.8

(1) Represents total number of loans at initial acquisition of respective pools.

(2) Unpaid Principal Balance.

(3) Venture-level debt represents 100% debt balance against loans as of September 30, 2012.

(4) Estimated foreign exchange rate is £0.63 = $1 USD and €0.78 = $1 USD. KW owns a 50% interest in an entity which in turn owns 25% of the United Kingdom loan pool. This entity has debt of $146.8 million as of September 30, 2012.

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Commercial

($ in millions)



					Net Operating Income (NOI)
	# of Properties	Total Sq. Ft.	Occupancy ⁽¹⁾		YTD Annualized ⁽²⁾		Debt ⁽³⁾		Pre-Promote Ownership%		Book Equity ⁽¹⁾
Western U.S.	18	3,292,830	80.9	%	$	38.3	$	432.7	38.5	%	$	63.9
Japan ⁽⁴⁾	1	9,633	100.0		0.5		—		78.2		9.0
United Kingdom and Ireland	1	45,105	100.0		2.7		—		50.0		10.1
Other	4	478,450	72.6		2.6		26.3		18.1		0.5
Total	24	3,826,018	80.1	%	$	44.1	$	459.0	38.5	%	$	83.5

(1) As of September 30, 2012.

(2) Represents year to date NOI on an annualized basis.

(3) Debt represents 100% debt balance against properties as of September 30, 2012, excluding $45.4 million of partner loans.

(4) Estimated foreign exchange rate is ¥79 = $1 USD and €0.78 = $1 USD related to NOI.

Kennedy-Wilson Holdings, Inc.

Operating Performance Summary: Residential and Other

($ in millions)

Residential



	# of Investments	Total Units	Total Acres	Finished Lots	Pre-Promote Ownership%		KW Book Equity ⁽¹⁾
Western U.S.	14	10	3,243	543	69.0	%	$	85.2
Other	1	—	50	—	3.8		0.2
Total	15	10	3,293	543	68.8	%	$	85.4

Other



	# of Investments	Pre-Promote Ownership%		KW Book Equity ⁽¹⁾
Western U.S.	1	100.0	%	$	0.5
United Kingdom and Ireland	1	100.0		10.2
Other	4	100.0		5.4
Total	6	100.0	%	$	16.1

(1) As of September 30, 2012.

Kennedy-Wilson Holdings, Inc.

Debt Schedule

($ in millions)



	Consolidated Debt								Unconsolidated Asset Level Debt				Total Consolidated Debt + KW Share of Unconsolidated Asset Level Debt
Maturity	Unsecured Corporate Debt				Asset Level Debt		Total		Total		KW Share				Amount Due at Maturity Date ⁽¹⁾
2012	$	—			$	—	$	—	$	68.1	$	17.1	$	17.1	$	15.9
2013	—				4.4		4.4		113.8		48.6		53.0		46.3
2014	—				0.2		0.2		297.8		95.2		95.4		58.2
2015	—				0.3		0.3		133.1		50.1		50.4		30.3
2016	—				12.2		12.2		409.4		171.3		183.5		139.0
2017	—				0.3		0.3		496.5		191.8		192.1		186.5
2018	—				13.3		13.3		174.2		36.3		49.6		46.2
2019	250.0		⁽²	⁾	—		250.0		139.8		31.8		281.8		279.4
2020	—				—		—		101.2		28.0		28.0		26.1
Thereafter	40.0				—		40.0		181.3		44.1		84.1		82.9
Total	$	290.0			$	30.7	$	320.7	$	2,115.2	$	714.3	$	1,035.0	$	910.8

(1) Maturity dates do not reflect extension options.

(2) Represents principal balance of senior notes.

Weighted average interest rate (KW Share): 5.3%

Weighted average remaining maturity in years (KW Share): 5.5 years

Kennedy-Wilson (KW) 8-KKennedy Wilson Reports 3Q 2012 Earnings